Travel and Subsistence Legislation Update

The long awaited travel and subsistence legislation has finally been published in full in the Finance Bill 2016.

Major legislative changes have come into force with effect, from 6 April 2016, which dramatically affects the ability of employed workers to claim travel and subsistence where there is the involvement of an employment intermediary.

Typically the employment intermediary situation involves an umbrella employer and an agency that contracts with end clients. For many years the employment intermediary market has operated around the ability of workers to claim expenses for travel and subsistence involving temporary workplaces.

The new legislation greatly restricts prospects for claiming travel and subsistence expenses going forward. Worryingly the changes can also affect individuals operating through their personal service companies.

If you would like more advice on this latest development from HMRC and options for the future please contact us today